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Interactive Expense Category Guide

Explore different expense categories to understand deductibility and VAT recovery rules.

Office & Equipment

Tax Deductibility

100%

VAT Recovery

Yes

Important Notes

Fully deductible for business use. VAT recoverable if registered.

Common Examples

  • Office rent
  • Computer equipment
  • Software subscriptions
  • Office furniture
  • Stationery

Irish Mileage & Travel Allowances (2025)

Current Revenue-approved rates for business travel and subsistence.

Motor Travel Allowances

Car/Van Mileage Rates

First 6,437km annually:€0.3756 per km
Over 6,437km annually:€0.2113 per km
Motorcycle:€0.2439 per km

Calculation Example

Annual business mileage: 10,000km

First 6,437km: 6,437 × €0.3756 = €2,418

Remaining 3,563km: 3,563 × €0.2113 = €753

Total allowance: €3,171

Subsistence Allowances

Domestic Day Rate

€34.84

Over 5 hours away from normal workplace

Domestic Overnight

€121.59

Overnight stay in Ireland

Foreign Travel

Varies

Country-specific rates apply

Expense Record Keeping Requirements

Essential documentation and record-keeping requirements for Irish businesses.

Required Documentation

VAT Invoices

  • • Supplier VAT number
  • • Invoice date and number
  • • VAT amount clearly shown
  • • Business name and address

Receipt Requirements

  • • Original receipts preferred
  • • Clear date and amount
  • • Business purpose documented
  • • Digital copies acceptable

Travel Records

  • • Mileage logs with dates
  • • Start/end destinations
  • • Business purpose
  • • Odometer readings

Digital Record Keeping

Mobile Apps

  • • Photo receipts immediately
  • • GPS tracking for mileage
  • • Cloud storage backup
  • • Categorize expenses

Accounting Software

  • • Bank transaction import
  • • Automatic categorization
  • • VAT tracking
  • • Report generation

Retention Period

Keep all business records for 6 years from end of relevant tax year. Digital copies must be clearly legible.

Common Expense Tracking Mistakes

Avoid these common errors that can lead to disallowed deductions or VAT issues.

Top 5 Mistakes to Avoid

1

Mixing Personal & Business Expenses

Keep separate accounts and only claim legitimate business expenses. Personal portions are not deductible.

2

Poor Receipt Management

Missing or illegible receipts can result in disallowed deductions. Implement digital scanning systems.

3

Incorrect Mileage Claims

Maintain accurate mileage logs. Estimates or inflated claims can trigger Revenue audits.

4

Claiming Non-Deductible Items

Entertainment over 50%, fines, personal life insurance, and capital expenditure have restrictions.

5

VAT Recovery Errors

Only claim VAT on valid VAT invoices. Ensure supplier is VAT registered and invoice meets requirements.

Expense Tracking Best Practices

Implement these systems for efficient and compliant expense management.

Monthly Routine

Categorize all expenses by type
Reconcile bank statements
Review mileage logs
File receipts digitally
Calculate VAT recoverable

Annual Review

Analyze expense trends
Identify tax-saving opportunities
Update mileage calculations
Prepare tax return documentation
Archive old records securely

Automate Your Expense Tracking

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